CHU Residential Strata Insurance

No one understands strata living quite like CHU.

Since 1978, we've led the way in fostering Australia’s healthiest and most resilient strata properties, by providing comprehensive cover that goes beyond buildings, to focus on strengthening the communities we serve.

That’s why our market-leading Residential Strata Insurance has been redesigned with community in mind - offering owners even greater protection.

Why Residential Strata Insurance?

To ensure strata communities protect their people, each state and territory requires that strata title properties hold residential strata insurance.

While each state and territory has different legislative requirements, CHU’s Residential Strata Insurance has always been designed to cover common areas as defined on the property’s title, including common property such as lawns, driveways, lifts and pools from events such as theft, storm, water damage, fire and malicious or accidental damage.

This ensures that repair and replacement costs are covered in the event of unforeseen incidents, providing financial protection for unit owners and owners corporations.

Residential strata insurance must also provide liability cover in the event of personal injury in connection with the insured property.

What does CHU Residential Strata Insurance Plan cover

Our Residential Strata Insurance plan has always provided comprehensive coverage for both the building and common area contents of residential strata properties.

This includes protection against natural disaster damage, fire, accidental damage, and legal liabilities.
This ensures your strata property is well-prepared for any unexpected events, whether safeguarding the strata property’s physical assets or offering legal protection.

CHU’s Residential Strata Insurance Plan includes cover for:

Building and common area contents
Emergency and temporary protection
Legal liability
Temporary accommodation and rent
Removal and storage of contents due to damage to property
Office Bearers Liability

In addition to these standard inclusions, CHU has also added a Lot Owners Contents extension option, in order to simplify, support, and cover communities in the most comprehensive way possible.

Lot Owner Contents Extension

Lot Owner Contents Insurance bridges the gap between strata insurance and traditional contents policies. Owners can now liaise with one insurer instead of two, for a claim where both common property and certain owner contents are impacted. Streamlining the claims process in this way minimises disruption and ensures a simpler experience for owners.

This new coverage supplements, rather than replaces, traditional comprehensive contents coverage, as it includes fixtures and fittings such as home appliances, curtains, blinds and carpets, not personal belongings such as clothing, jewellery or other accessories.

For example, if damage has occurred to the strata building as a result of previously defined events, and a small section of an owner’s property is impacted (e.g. carpets, blinds, furnishings), the claim is simplified by having one party complete the entire rectification process.
This will mean no extended wait times or unexpected gaps in support between multiple insurers.

Lot Owners Contents Cover FAQs

Office Bearers Liability

As Strata Committees are made up of strata community volunteers, navigating complex strata governance rules.This cover safeguards committee members should they become legally liable while carrying out their duties.

Due to the potentially damaging outcomes of legal action for strata communities, the Office Bearer Liability coverage in our Residential Strata Insurance plan has changed from being an optional add-on, to an inclusion.

With Office Bearers Liability now included, legal costs and damages awarded against committee members are covered if they face claims for wrongful acts, errors, or omissions in managing the strata property.

Office Bearers Liability Scenarios

Fidelity Guarantee

Previously optional, Fidelity Guarantee is now also included in our Residential Strata Insurance plan, as it protects the body corporate against financial losses resulting from the fraudulent misappropriation of their funds.

This protection is particularly crucial for strata managers, committee members, and other individuals entrusted with managing the body corporate's finances.

Simplified language to get to the heart what matters

We’re committed to the communities we serve, that's why we’ve made every effort to make our Residential Strata Insurance policy wording easier to understand.

All building related covers (Insured Property, Machinery Breakdown, Catastrophe Cover and Lot Owners’ Fixtures and Fittings) are now included in one section of the PDS, enabling owners to decide what type of cover best suits them.

Our team would love to chat about your Residential Strata Insurance plan.

Cover for your building and common area contents

Emergency and temporary protection

Legal liability

Temporary accommodation and rent

Removal and storage of contents due to damage to property

Office bearers' legal liability

Get an online quote

Important documents

Name	Link
PDS and policy wording for policies effective 31 July 2025 Our policy encompasses additional and increased benefits over the minimum required by law.	Download
What has changed for policies effective 31 July 2025 Outlines key policy changes, and should be read in conjunction with latest Product Disclosure Statement and Policy Wording.	Download
PDS and policy wording for policies effective 1 October 2023 Our policy encompasses additional and increased benefits over the minimum required by law.	Download
Target Market Determination (TMD) Target Market Determination is a document that describes who the product is appropriate for (target market), and any conditions around how the product can be distributed to customers.	Download
Lot Owners Contents Cover FAQs Answering your questions about our newly introduced Lot Owners’ Contents Cover.	Download
Lot Owners Contents Cover Case Study A real example of the benefits of our newly introduced Lot Owners’ Contents Cover.	Download
Office Bearers Legal Liability Cover Scenarios Detailing in what scenarios would Office Bearers Liability cover apply.	Download

^{Update pursuant to ASIC Corporations Instrument 2016/1055}
^{Below is a change in information that is an update that is not adverse to the Residential Strata Insurance Plan Product Disclosure Statement and Policy prepared on 25 July 2025 (“PDS”).}

^{What is the change?}
^{On page 5 of the PDS, the section titled “Section 1 – Insured Property – standard extension – Lot Owners’ Fixtures and Improvements” is deleted and replaced with:}

^{"Section 1 – Insured Property – standard extension – Lot Owners’ Fixtures and Improvements}
^{We insure the cost of replacing Lot Owners’ Fixtures and Improvements in their Lot/Unit provided that the Sum Insured under Section 1 has been expended. Replacement of such installations must be following Damage by any Event that is not otherwise excluded under Section 1."}

Why choose CHU?

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Over 1 million properties protected

24/7 Emergency Hotline

Over 40 years of insurance expertise

Peace of Mind for Common Strata Risks

Owning a residential strata property comes with shared responsibilities and risks. Insurance plays a pivotal role in managing these risks, providing reassurance that your property and its residents are protected. Some of the most common strata risks include:

1. Leaking roofs, burst pipes, and electrical issues:

Whether due to heavy rain, hail storms or falling trees , insurance can cover the repair costs associated with water or fire damage caused by these issues.

2. Fire damage, theft, and vandalism:

Naked flames, cooking accidents, and faulty heating systems can lead to fire damage. Vandalism and theft can also occur, leading to damage or loss of property. Insurance plays a crucial role in these situations by covering the costs associated with repairing or replacing property and damaged items.

3. Personal injury within common areas:

Accidents such as slips on wet surfaces and falls on stairwells are a common risk in strata properties. Insurance can cover medical expenses and potential liability claims made by residents or visitors injured while in shared spaces.

4. Legal claims against the body corporate:

Disagreements and disputes may be made against the body corporate. If these issues escalate to a legal dispute, insurance provides coverage for the legal costs and potential liabilities – ensuring the body corporate is financially protected.

Protect your residential strata property with CHU's comprehensive insurance coverage. Request a quote today and ensure your property and its residents are well-protected from common risks.

How is strata insurance different from home insurance?

Strata insurance covers common property and shared areas in strata-titled properties, while home insurance covers individual units or houses. Strata insurance also typically includes liability protection for the body corporate and its members.

Do I need to get additional insurance if I already have strata insurance?

It is advisable to check what is covered under your strata insurance policy and determine if you require any additional coverage for personal belongings, improvements to your unit, or additional liability protection. We offer contents insurance if you live in an apartment, unit, villa or townhouse to protect your personal belongings, as residential strata insurance only protects the building, not your personal property or possessions.

Frequently asked questions

Is Residential Strata insurance mandatory?
Yes. Strata insurance is legally required nationwide .

The cost is shared between lot/unit owners and managed by the Owners Corporation (body corporate). You are required to have strata insurance if you live in a:
- Townhouse
- Unit/Flat
- Apartment
- Duplex
- Community Association
Who arranges strata insurance – the owner or the body corporate?
Strata insurance is arranged by the Owners Corporation (body corporate), not individual owners.
- All lot owners contribute to the premium through strata fees.
- The policy covers the whole building and shared property on behalf of the group.
Does strata insurance cover my personal belongings?

No. Strata insurance does not cover your personal property inside your unit. You need separate contents insurance to protect belongings like furniture, appliances, clothing, and valuables.

Residential strata insurance only covers the building structure and shared common areas.
What is the excess on my policy?
The excess depends on the building sum insured value of your building.
- Building sum insured under $2M → $1,000 excess
- Over $2M → $2,000 excess
- Over $50M → $5,000 excess
You can choose to adjust your excess, which may affect your premium. Other excesses may be imposed depending on claims history, defects, or risk factors.
Are there any exclusions to the Residential Strata Insurance Plan?
Yes. Exclusions are detailed in the Product Disclosure Statement (PDS).
- There are exclusions that apply to the entire policy (general exclusions).
- Additionally there are other exclusions that are specific to certain covers within the policy (specific exclusions).
In some cases, additional exclusions may be applied depending on your building’s situation. Review your policy carefully and contact us for information on any other specific exclusions.
Does strata insurance cover building defects or maintenance issues?

No. Strata insurance does not cover defects, wear and tear, or poor maintenance.

It is designed to cover sudden and unexpected damage (e.g. fire, storm, or water damage), not ongoing maintenance or construction issues.
Why do I need Loss of Rent and Temporary Accommodation cover in an owner-occupied building?
It covers you if your home becomes uninhabitable after an insured event.
- CHU will cover reasonable accommodation costs for owners living in their lot.
- If you rent out your unit, this cover also protects your rental income if tenants need to vacate.
What is Fidelity Guarantee?

Fidelity Guarantee is cover for the Body Corporate in the event your Funds are misappropriated during the Period of Insurance. Whilst only required by legislation in South Australia, Fidelity Guarantee forms part of CHU's specialised cover and is standard on all residential strata policies.
What is Common Area Contents?
Common area contents are items owned by the Owners Corporation that are located in shared spaces.

Examples include:
- Carpets in stairwells
- Garden furniture in courtyards
- Curtains or blinds in communal areas
- Fire extinguishers and shared appliances
Permanent fixtures like driveways and letterboxes are covered under the building sum insured, not contents.
Can I cancel my policy if I’ve sold my unit?
No. Strata policies cannot be cancelled mid-term by individual lot owners.
- Strata insurance is held by the Owners Corporation, not individual owners.
- If an owner has sold their unit they are no longer party to the strata policy.
- Any premium adjustments are usually handled through the property settlement process.
What is Lot Owners Fixtures and Fittings?

They are permanent improvements installed by a lot owner for their exclusive use.

Examples include upgraded floorboards, renovated bathrooms, or built-in cabinetry. These become legally part of the building once installed.
How does Office Bearers' Legal Liability protect lot owners?
It covers legal costs if claims are made against members of the strata committee in the roles of Chairperson, Secretary and Treasurer.
- Protection applies to wrongful acts, errors, or omissions committed while carrying out official duties.
What is the minimum amount of Liability needed for my state and is there any other covers that I must have for my state for Residential Strata?

Liability to others (sometimes referred to as Public Liability) is a compulsory requirement under legislation. The minimum limit of liability varies between states and territories as follows:

WA $5,000,000 in a survey strata or non-single tier strata scheme (e.g. A multi-storey block of flats) $10,000,000 in a Single Tier Strata Scheme:

TAS - minimum of $5,000,0000

VIC - minimum of $20,000,000

SA - minimum of $10,000,000, as well as mandatory cover for fidelity guarantee

QLD - minimum of $10,000,000

NT - minimum of $10,000,000

NSW - minimum of $20,000,000, as well as mandatory cover for voluntary workers

ACT - minimum of $10,000,000
What is cladding in strata buildings?
Cladding refers to material fixed to the outside of a building for decoration or protection.
- Common cladding includes timber, fibre cement, vinyl, aluminium composite panels (ACP), or expanded polystyrene (EPS).
- Where ACP or EPS is used, CHU may require compliance checks with the National Building Code.
How do I know how much to insure my building or strata for?
A professional strata building valuation is the best way to determine the appropriate sum insured.

The valuation should cover:
- Full reinstatement (like-for-like rebuild)
- Debris removal and professional fees
- Inflation and cost escalation
CHU automatically indexes your sum insured at renewal, but valuations should be carried out regularly. In some states, valuations are legally required every five years.
What happens if my building is underinsured?
If your building is insured for less than its replacement value, you may not receive enough to fully rebuild after a major loss.
- This could leave lot owners responsible for covering the shortfall
- Regular valuations reduce the risk of underinsurance.
Do I need any other insurance if I already have strata insurance?
Yes. Strata insurance does not replace contents or landlord insurance.
- Landlord Insurance: Protects against tenant-related losses (e.g. unpaid rent, damage).
Owner-occupiers: Contents insurance covers personal belongings against theft, damage, or fire.

Residential Strata Insurance

Community-minded Residential Strata Cover